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Aliya Mustafina of Russia acts during a balance beam event of women's individual all-around of Artistic Gymnastics at the 2016 Rio Olympic Games in Rio de Janeiro， Brazil， on Aug. 9， 2016. Aliya Mustafina won the bronze medal. (XinhuaZheng Huansong)
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Avoiding an Income Tax Audit if you are a Small Business
There’s something about just sitting down with an IRS income tax auditor that can get to even the most self-composed and mature men. The bad news is, if you are self-employed, and your way of filing your tax return is to innocently do it with a Schedule C, you are already on the IRS shortlist for an income tax audit. What did you do to deserve that? It’s just that you’ve been personality-profiled – they figure that anyone who runs a business michael kors bedford bag uk , is bound to try to disguise personal expenses as business ones, and claim deductions on them. They typically earmark 50% more auditors to audit firms and the self-employed pool, than they do for the salaried W-2 pool. But there is still a lot you can do, to keep out of their sights.
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And the flip side of that is, that if you do your own taxes michael kors crossbody bags uk , while skipping the professionals and professional grade software, the IRS feels that you’re probably not going to have done a good job, being an amateur at this and all, and will bring you in for an income tax audit. Did you know that the tax code runs to more than 10,000 pages? Their assumption that you probably couldn’t possibly have all that under your belt, is a reasonable one. If you are just worried about how professional CPA might charge you big bucks michael kors clutch bag sale uk , consider how an income tax audit costs you big bucks too.
There is a pattern here, if you would care to see it. They feel that the more homey and personal your business structure is, the more under suspicion you naturally are under. If you happen to be a company, you’re right away all more believable in the eyes of the IRS, and have less problems with an income tax audit. You could actually consider upgrading your business to something more businesslike – turn yourself into an incorporated partnership or something. But more important than any of these image problems you might have of not using the right software or looking like a “real” business, is the way you file your returns.
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